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City Council Minutes 01-23-1995r~ L MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, January 23, 1995 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Tom Perrault, Brian Stumpf Members Absent: None 2. Ataproval of minutes of the regular meeting_h~ld January 9 and the suecial meeting held January ,17, 1995. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD JANUARY 9 AND THE SPECIAL MEETING HELD JANUARY 17, 1995. Motion carried unanimously. 3. Consideration of adding items to the agenda. A. Public hearin on ado tion of ro osed assessment roll for delin uent utilit bills and certification of assessment rail to Count Auditor. _~ It was the consensus of Council to add this item to the agenda. In Administrator Wolfsteller's report, it was noted that Council is asked to adapt an assessment roll far utility billing accounts which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on the 1996 taxes if not paid by November 30, 1995. In addition to the delinquent amount, the Council also previously approved the establishment of an administrative fee of $25 per account, which has been included on the list of delinquent accounts presented to the Council. It was also noted that since Council previously approved disconnection of water service for accounts with a past due balance over $50Q, the City will be taking action on the commercial account showing a past due balance aver $500 after proper notification to the property owner. Mayor Fyle then opened the public hearing. There being no comment from the public, the public hearing was closed. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO ADOPT THE ASSESSMENT ROLL FOR THE DELINQUENT CHARGES AS PRESENTED, AND TO DIRECT STAFF TO PROCEED WITH THE PROCESS OF DISCONNECTING WATER SERVICE TO THE ACCOUNT WITH A PAST DUE BALANCE OVER $500 AFTER PROPER NOTIFICATION TO THE PROPERTY OWNER. Motion carried unanimously. SEE RESOLUTION 95-5. Page 1 Council Minutes - 1/23/95 4. Citizens comments/petitions, requests, and complaints. None. 5. Consideration of appeal of denial of 2-ft side__yard setback variance to allow ara a addition. A licant Paul Klein. Building Official Gary Anderson reported that Paul HIein has appealed the Planning Commission's decision to deny Klein's request fora 2-ft side yard setback variance to allow construction of a garage addition to the west of the existing garage. In his report, Anderson noted that HIein is proposing to construct a 10-ft addition to the garage in order to accommodate installation of a standard 9-ft x 7-ft overhead garage door. The closest neighboring structure is 28 ft from the proposed garage addition. Anderson noted that the building setback was rechecked, and it was found that the variance request was reduced to 1 ft. Assistant Administrator O'Neill explained that the Planning Commission denied the variance request based on the finding that the request did not meet the criteria consistent far granting a variance. It was their view that a hardship does not exist and that Klein could still obtain reasonable use of his property by removing the existing 9-ft x 7-ft garage door and header, downsizing the garage addition to fit within the setback requirements, and installing a 16-ft x 7 ft garage door. Tam Bose, a neighbor to the east, stated that HIein maintains his yard and buildings; therefore, he had na problem with the proposed variance. AFTER DISCUSSION, A MOTION WAS MADE BY CLTNT HERBST AND SECONDED BY SHIRLEY ANDERSON TO GRANT A 1-FT VARIANCE TO THE SIDE YARD SETBACK BASED ON THE FINDING THAT A STANDARD TWO- CAR GARAGE IS A CUSTOMARY USE OF THE PROPERTY, AND THE EXISTING STRUCTURE IS LESS THAN THE MINIMUM SIZE FORA 2-CAR GARAGE. THE 10-FT ADDITION IN THIS CASE IS THE SMALLEST REASONABLE INCREASE IN SIZE POSSIBLE WITHOUT MAJOR DEMOLITION OF THE ORIGINAL STRUCTURE. Motion carried unanimously. 6. Consideration of acce tin revised ro osal for urchase and develo ment of Outlot A Countr Club Manor. Assistant Administrator O'Neill reported that Council is asked to consider accepting a revised proposal made by David Hornig for purchase and development of Outlot A, Country Club Manor. Tn his report, O'Neill reviewed the history of this property, noting that the Council completed a request for proposals in May of 1994 in an attempt to find a buyer and developer of this 16-acre parcel that the City obtained through the tax Page 2 Council Minutes - 1/23/95 forfeiture process. In April 1994, the proposal submitted by Hornig was selected over a similar proposal submitted by Shelter Corporation, and staff was directed to prepare a development agreement based on phase I consisting of 42 units at a land price of $126,000. Hornig later requested modifications to the original proposal downsizing the plan to 12 units at a land price of $36,000. After Council directed staff to open negotiations with Shelter Corporation if Hornig did not commit to development of 42 units, Hornig then requested and was granted two extensions of the deadline in order to obtain financing. O'Neill went on to report that Hornig recently submitted another revised proposal which includes 24 units of senior rental housing at a land price of $72,000 rather than the $126,000 originally anticipated by the City. The revised proposal is similar to the original proposal except that the first two phases of land acquisition and phasing are reversed; however, the phasing switch greatly reduces the cash that the City expected with phase I, which means that the City must carry greater land holding costs. He also noted that selection of the proposal was contingent on the developer obtaining financing, and it was expected that the property would be sold by now for at least the first phase. David Hornig stated that a housing market study was commissioned immediately after award of this proposal and that the proposal indicated that he would be applying for tax credits through the State of Minnesota to assist with financing the development. Because the April deadline was missed, the application had to be submitted in August of 1994. Hornig noted that he was notified in September 1994 that he was not awarded the tax credits but that his project would be put on a reserve list; however, on December 31 he was notified that he again did not receive award of the tax credits. Hornig continued by explaining that after receiving a letter from the Assistant Administrator regarding staff's concern that progress on the project was lacking, he submitted the current revised proposal to the City for review and comment. He noted he is prepared to purchase the property in April 1995 for the 24 units and will also be applying for tax credits in April for the proposed 42 units. He added that the proposed 24 townhome units in the first phase would be built For sale rather than rent. If the market warrants this type of unit, the development would continue in this fashion; if not, they would most likely change to rental units. Hornig requested that Council define what they would like for this property and give him a chance to meet their expectations. Councilmember Anderson noted her concern that the City selected this proposal nine months ago and that Council is again being asked for additional time before the land is purchased. It was noted by staff members Page 3 Council Minutes - 1/23/95 that the City has already invested in the area by berming and beginning a storm water study. Reducing the size of the project at this time would change the entire scope of the project and could result in the City being faced with providing additional funds upfront. Councilmember Herbst agreed that the City has been holding the land for a long time; however, since Hornig's development was felt to be the best proposal, it was his view that perhaps the City should again try and develop an agreement that includes closing deadlines on purchase of the property and also includes holding cast compensation to the City. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO DIRECT STAFF TO MEET WITH HORNIG, DEVELOP AN AGREEMENT INCLUDING DETAILS ON CLOSING ON THE PURCHASE OF THE PROPERTY, AND RETURN THE ITEM TO COUNCIL AT THE FEBRUARY 27 MEETING FOR CONSIDERATION. Motion carried unanimously. 7. Consideration of a resolution callin far a ublic hearin on TIF District 1-19 Mississi i Shores . Economic Development Director Ollie Koropchak reported that Tax Increment Finance District No. 1-19, a 25-year housing district, is being created for the Monticello Senior Housing Alliance, Inc., anon-profit organization. Minimum improvements will include construction of a 48-unit housing project for senior adults, and the TIF assistance will be used to reduce and maintain rental fees at a moderate rate. She noted that Council is asked to adopt a resolution calling for a public hearing on Monday, February 27, 1995, regarding TIF District No. 1-19. Koropchak added that the conflict of interest previously cited by the City Attorney regarding Councilmembers Anderson and Herbst serving an bath the Council and the Senior Housing Board no longer exists because Anderson and Herbst resigned from the Senior Alliance Board on January 16, 1995. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY BRIAN STUMPF TO ADOPT A RESOLUTION CALLING FOR A PUBLIC HEARING ON FEBRUARY 27, 1995, FOR TIF DISTRICT NO. 1-19. Motion carried unanimously. SEE RESOLUTION 95-6. 8. Consideration of a resolution declarin official intent to reimburse Mississi i Shores . Economic Development Director Ollie Koropchak stated that, on the advice of the Attorney, Council is asked to re-approve the resolution declaring their intent to reimburse the City certain expenditures from bond proceeds regarding the senior housing project. The initial resolution declaring intent Page 4 Council. Minutes - 1/23/95 to reimburse made at the January 9 Council meeting was made during the period of time when Councilmembers Anderson and Herbst also served on the Senior Housing Alliance Board of Directors. Because Anderson and Herbst resigned from the Senior Housing Alliance Baard on January 16, a conflict of interest no longer exists, and it is suggested that the Council re- approve the proposed resolution. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO RE-APPROVE THE RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF MONTICELLO TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY. Motion carried unanimously. SEE RESOLUTION 95-7. 9. Consideration of a rovin Tans ands ecifications authorizin advertisement for bids and settin a ublic heax-in for the Meadow Oak storm sewer outlet ro'ect. Public Works Director John Simola reported that at the January 25, 1993, meeting, Council selected two alternates for further study regarding the Meadow Oak storm sewer outlet project. Alternate "B" proposed running the storm water through the Rod Norell property, and Alternate "D" proposed running the storm water down the center of Gillard Avenue to the Mississippi River. After adoption of the revised storm sewer assessment policy on April 25, 1994, staff met with Monticello Township, Rod Norell, and Gene Bauer regarding impending storm sewer improvement projects and costs. The Township promised to pay for half of the 2-inch overlay cast for Gillard Avenue reconstruction. Discussions with Rod Norell indicated he was not interested in seeing the storm sewer run through his property without a substantial payment from the City, which resulted in Alternate "B" being impractical. Simola went on to report that an June 13, 1994, Council authorized staff to proceed with bids for the project using Alternate "D" but to continue working with the Minnesota Department of Transportation, the County, and the Township, regarding oversizing the project to help alleviate ditch 33. Originally it was felt that the State would contribute to the project due to the run-off from the freeway between Meadow Oak and the Gene Bauer property. Bids received on August 12, 1994, came in $10,000 below the engineer's estimate for the alternate project, while the base project bids came in $80,000 over the estimate. With no commitment received from the County, State, or Township to pay for a portion of the alternate large pipe project, the bids were rejected, and Council chose to give the County, State, and Township, until January 15, 1995, to respond to the City regarding a - cooperative agreement for paying a portion of any oversizing of the storm sewer project. Page 5 Council Minutes - 1/23/95 Since the City has received no commitments from these agencies, Simola noted that the City must now move ahead with the project on its own, and Alternate "D" down Gillard Avenue remains the only alternative at this time. The estimated cost of the basic project is approximately $334,000. To add an additional 5 cubic feet per second for additional discharge into this system from future city development or from the County or State would add $70,000, bringing the estimated cast of the project to $404,000. Simola also noted that because of the delay in starting this project, it may be beneficial to hold a public hearing after the bids are received since a number of residents on Gillard are concerned about the street replacement and assessments for storm sewer. Bret Weiss, City Engineer, added that an agreement with MN/DOT had recently been reached whereby the State will pay for their share of the storm water going into the Bauer property, which will amount to between $~o,ooo ana $30,000. Rick Busch, a Gillard Avenue resident, asked if the scope of the project has changed since last year and questioned what residents would be assessed for. Busch was informed that the project has not changed, and benefiting property owners would be assessed for street and storm water improvements. AFTER FURTHER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY SHIRLEY ANDERSON TO APPROVE THE PLANS AND SPECIFICATIONS WITH THE ADDITIONAL 5 CU FT PER SECOND CAPACITY TO BE USED IN THE FUTURE TO HANDLE ADDITIONAL RUN-OFF FROM AREAS NOW OUTSIDE OF THE CITY THAT CURRENTLY DRAIN STORM WATER TO DITCH 33 AT AN ADDITIONAL ESTIMATED COST OF $70,000. BIDS WILL BE CONSIDERED AT THE MARCH Y3 COUNCIL MEETING ALONG WITH A PUBLIC HEARING AT THE SAME MEETING. Motion carried unanimously. SEE RESOLUTION 95-9A. 10. Consideration of ado tin resolutions authorizin re oration of a feasibilit study and declaring official intent to reimburse--Cardinal Hills Phase V. Assistant Administrator O'Neill reported that Value Plus Homes, Inc., has petitioned the City to complete improvements to phase V of the Cardinal Hills subdivision; therefore, Council is asked to authorize preparation of a feasibility study for installation of public improvements. The developer has deposited $2,000 with the City to cover the cost of the study. In addition, O'Neill requested that Council adopt a resolution declaring its intent to use proceeds from a future bond sale to reimburse the City for expenditures relating to installation of utilities. Page 6 Council Minutes - 1/23/95 AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO AUTHORIZE PREPARATION OF A FEASIBILITY STUDY FOR IMPROVEMENTS TO PHASE V OF THE CARDINAL HILLS RESIDENTIAL SUBDIVISION. Motion carried unanimously. SEE RESOLUTION 95-8. A MOTION WAS ALSO MADE BY CLINT HERBST AND SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION DECLARING THE CITY'S INTENT TO USE PROCEEDS FROM A FUTURE BOND SALE TO REIMBURSE THE CITY FOR EXPENDITURES RELATING TO INSTALLATION OF UTILITIES FOR CARDINAL HILLS PHASE V. Motion carried unanimously. SEE RESOLUTION 95-9. 11. Consideration of selectin a consultant to conduct soils correction stud at the fire hall site. This item was tabled at staff s request pending further negotiations with two consultants. 12. Consideration of adopting modification to redevelopment contract assessment aeeement--Taper's, Inc. Economic Development Director Ollie Koropchak reported that recently the Council adopted a resolution modifying the TIF Plan for TIF District No. 1-9, which increased the TIF budget by $30,000. The $30,000 site improvement expenditures will occur with Bill and Barb Topper's 18,000 sq ft expansion this summer. In addition, the Private Redevelopment Contract between the HRA and the Tappers was agreed upon and amended by both parties; however, within the Private Redevelopment Contract is an Assessment Agreement which, according to amended Minnesota Statutes must now be approved by City Council prior to the document being recorded at the County. Koropchak noted that the amended Assessment Agreement increases the original minimum market value of $750,000 to $1,225,000 as of January 2, 1996. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TO APPROVE THE AMENDED AND RESTATED ASSESSMENT AGREEMENT FOR THE PRNATE REDEVELOPMENT CONTRACT BETWEEN THE HRA AND THE TAPPERS. Motion carried unanimously. 13. Consideration of u adin uniforms for ublic works em to ees. Public Works Director John Simola requested that Council consider upgrading the uniforms provided for public works employees. Currently, the City rents uniforms from Unitog, who also launders them. Employees Page 7 Council Minutes - ]J23/95 are provided five uniforms, which allows two changes per week; however, many of the employees wash their uniforms at home. The current cost of providing uniforms is $187.20 per year per employee. Simola went on to note that there have some problems with the condition of uniforms provided by Unitog, and staff has received a quote from G & K Services of Waite Park for uniform service. The minimum service provided by G & K is seven uniforms, or three changes per week, which would amount to a yearly cost per employee of $226.20. Eleven sets of uniforms, or five changes per week, would amount to $312 per employee per year. In addition, amulti-colored logo is also available for $2 each, which could be used to help better identify City employees. The Public Works Director also noted that in preparation for switching uniforms, an amount of $300 per employee was placed in the 1995 budget. Councilmember Herbst suggested that the City also provide jackets for the public works employees. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRIAN STUMPF TO APPROVE A CHANGE IN UNIFORMS FOR THE PUBLIC WORKS EMPLOYEES, WITH THE CITY PROVIDING FIVE CHANGES PER WEEK FOR THE HOURLY STAFF, THREE CHANGES PER WEEK FOR THE SALARIED STAFF, AND FOUR CHANGES PER WEEK FOR THE WATER Si.JPERINTENDENT. STAFF TS ALSO AUTHORIZED TO PROVIDE TWO JACKETS FOR PUBLIC WORKS EMPLOYEES AFTER INVESTIGATING THE COST OF RENTING VERSUS OWNING. Voting in favor: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf Opposed: Tom Perrault. It was Perrault's view that three changes per week would be sufl`icient during the winter months. 14. Consideration of bills for the month of Januar . After discussion, a motion was made by Shirley Anderson and seconded by Brian Stumpf to approve the bills for the month of January as presented. Motion carried unanimously. There being no further discussion, the meeting was adjourned. Ka're~i Doty Office Manager Page $